Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — Q4 2015 Earnings Presentation
29 slides from Canadian Imperial Bank Of Commerce's earnings presentation, December 2015
Slide 1: CIBC Investor Presentation
CIBC Investor Presentation Fourth Quarter, 2015 December, 2015
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including in this presentation, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission and in other communica
Slide 3: CIBC Overview
CIBC Overview Victor Dodig President and Chief Executive Officer
Slide 4: Fourth Quarter, 2015 Financial Review
Fourth Quarter, 2015 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 5: 2015 Summary
5 2015 Summary FY14 FY15 Net Income ($MM) - Adjusted (1) 3,657 3,822 • Record adjusted earnings in 2015 Net Income ($MM) - Reported 3,215 3,590 • Dividends paid up 9% YoY (1) Diluted EPS - Adjusted $8.94 $9.45 • Industry leading ROE Diluted EPS - Reported $7.86 $8.87 • Strong Basel III CET1 ratio of
Slide 6: Fourth Quarter, 2015 Summary
6 Fourth Quarter, 2015 Summary Q4/14 Q3/15 Q4/15 (1) • Strong volume growth in Retail and Net Income ($MM) - Adjusted 911 990 952 Net Income ($MM) - Reported 811 978 778 Business Banking • Stable YoY performance in Capital Diluted EPS - Adjusted (1) $2.24 $2.45 $2.36 Markets and Wealth Management Di
Slide 7: Retail & Business Banking
7 Retail & Business Banking Adjusted ($MM) (1) Q4/14 Q3/15 Q4/15 • Strong volume growth Personal Banking 1,632 1,693 1,749 − Deposits up 6% YoY Business Banking 393 410 414 Other 27 24 20 − Mortgages up 7% YoY Revenue 2,052 2,127 2,183 − Business credit up 10% YoY Provision for Credit Losses 171 165
Slide 8: Wealth Management
8 Wealth Management Adjusted ($MM) (1) Q4/14 Q3/15 Q4/15 • Lower transactional volumes in Retail Brokerage 302 312 304 challenging market conditions Asset Management 206 225 217 Private Wealth Management 79 93 91 • YoY asset growth driven by strong net Revenue 587 630 612 sales Credit Losses - - - N
Slide 9: Capital Markets
9 Capital Markets Adjusted ($MM) (1) Q4/14 Q3/15 Q4/15 • Stable YoY earnings despite challenging Global Markets 308 417 310 Corporate & Investment Banking 265 277 269 environment Other 4 4 (1) • Weaker markets driving lower trading (2) 577 698 578 Revenue revenues vs Q3/15 Provision for (Reversal of
Slide 10: Corporate & Other
10 Corporate & Other Adjusted ($MM) (1) Q4/14 Q3/15 Q4/15 International Banking 150 175 179 • Higher earnings in CIBC FirstCaribbean Other (35) (106) (67) driven by favourable FX and strong Revenue (2) 115 69 112 credit performance Provision for Credit Losses 9 15 13 • Lower investment income & gain
Slide 11: Capital
11 Capital Common Equity Tier 1 Ratio (all-in basis) • Basel III CET1 ratio of 10.8%, flat QoQ − Internal capital generation, offset by growth in risk-weighted assets Risk-Weighted Assets ($B; all-in basis) • Risk-weighted assets of $156 billion, up $2 billion QoQ − Driven by business growth • Basel
Slide 12: Fourth Quarter, 2015 Risk Review
Fourth Quarter, 2015 Risk Review Laura Dottori-Attanasio Senior Executive Vice-President and Chief Risk Officer
Slide 13: Provision for Credit Losses
13 Provision for Credit Losses Adjusted ($MM) (1) Q4/14 Q3/15 Q4/15 vs. Q3/15: Retail and Business Banking 171 165 190 Wealth Management - - - • Higher losses in the oil and Capital Markets 14 9 (5) gas sector within business CIBC FirstCaribbean 17 10 7 banking Collective Provision for Non-Impaired
Slide 14: Impaired Loans and Formations
14 Impaired Loans and Formations Q4/14 Q3/15 Q4/15 • New formations up QoQ Reported ($MM) Consumer 299 293 275 • Gross impaired loans down QoQ, Business and Government 25 24 106 Total New Formations 324 317 381 primarily as a result of declines in CIBC FirstCaribbean and in the U.S. region Gross and
Slide 15: Oil & Gas Direct Exposure
15 Oil & Gas Direct Exposure Direct Exposure(1) ($B) • $17.3B of direct exposure(1), 16.7 16.7 17.4 17.3 down slightly from $17.4B last 15.4 quarter − 78% of this is investment grade • $6.1B drawn exposure(1), down from $6.2B last quarter Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Downstream Integrated 3% 15% Ex
Slide 16: Oil & Gas Retail Exposure
16 Oil & Gas Retail Exposure Outstandings ($MM) • $39B of indirect exposure to oil Mortgages HELOC Other (1) provinces (or $17B excluding Insured Uninsured insured mortgages) Alberta 17,134 7,081 2,744 3,539 Saskatchewan & Newfoundland 4,446 1,872 717 1,349 − Alberta accounts for $30B or Total 21,58
Slide 17: Cards
17 Cards 200 6% 5% 160 4% 120 ($MM) 3% 156 154 80 142 142 2% 127 113 99 102 99 40 96 90 93 88 1% 0 0% Q4/12 Q2/13 Q4/13 Q2/14 Q4/14 Q2/15 Q4/15 (1) (1)(2) (3) Adjusted Net Credit Losses (NCL) Adjusted NCL Rate 30+ Days Delinquency Rate 1 Adjusted results are a Non-GAAP financial measures. See slide
Slide 18: Canadian Residential and Condo Mortgage Portfolios
Canadian Residential and Condo Mortgage 18 Portfolios Q4/14 Q3/15 Q4/15 • Canadian residential mortgage ($B) Residential Mortgages (excludes Condos) 135 141 145 portfolio (includes condos) was Condo Mortgages 17 18 18 $163B Total Canadian Residential Mortgages 152 159 163 − 64% insured; average LTV(
Slide 19: Canadian Condo Developer Exposure
19 Canadian Condo Developer Exposure Condo Developer Exposure ($B) • Drawn developer loans were $1.0 billion or 1.4% of our business & government portfolio 1.0 1.1 1.0 0.9 1.0 • Condominium developer exposure diversified across 87 2.0 1.8 1.9 2.0 1.9 projects Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Undrawn Dr
Slide 20: Trading Revenue (TEB) Distribution
20 Trading Revenue (TEB)(1) Distribution(2) ($MM) ($MM) 30 30 25 25 20 20 15 15 10 10 5 5 0 0 (5) (5) (10) (10) (15) (15) Aug-15 Sep-15 Oct-15 Trading Revenue (TEB) VaR 1 Non-GAAP financial measure. See slide 29 for further details. 2 Trading revenue (TEB) comprises both trading net interest income
Slide 21: Appendix
Append xX Banking that fits your life.
Slide 22: Retail & Business Banking – Loans & Deposits
22 Retail & Business Banking – Loans & Deposits Average Loans ($B) Average Deposits ($B) +6% +6% +2% +2% Growth YoY QoQ Growth YoY QoQ Residential Mortgages 7% 3% Personal Deposits & GICs 5% 1% Personal Loans 3% 1% Business Deposits & GICs 9% 5% Credit Card 1% 1% Business Lending 10% 2%
Slide 23: Wealth – Mutual Funds & Client Asset Balances
23 Wealth – Mutual Funds & Client Asset Balances Canadian Retail Mutual Funds ($B) +9% -2% AUA ($B)(1)(2) AUM ($B)(1)(2) 1 Assets under management (AUM) are included in assets under administration (AUA). 2 Certain amounts have been reclassified/restated to conform to the presentation in the current
Slide 24: Retail & Business Banking
24 Retail & Business Banking Reported ($MM) Q4/14 Q3/15 Q4/15 Personal Banking 1,629 1,693 1,749 Business Banking 393 410 414 Other 24 24 20 Revenue 2,046 2,127 2,183 Provision for Credit Losses 171 165 190 Non-Interest Expenses 1,072 1,097 1,101 Income Before Taxes 803 865 892 Taxes 201 229 237 Net
Slide 25: Wealth Management
25 Wealth Management Reported ($MM) Q4/14 Q3/15 Q4/15 Retail Brokerage 302 312 304 Asset Management 203 223 214 Private Wealth Management 79 93 91 Revenue 584 628 609 Credit Losses - - - Non-Interest Expenses 428 443 447 Income Before Taxes 156 185 162 Taxes 37 45 39 Net Income - Reported 119 140 12
Slide 26: Capital Markets
26 Capital Markets Reported ($MM) Q4/14 Q3/15 Q4/15 Global Markets 196 417 310 Corporate & Investment Banking 265 277 269 Other 7 2 - (1) Revenue 468 696 579 Provision for (Reversal of) Credit 14 9 (5) Non-Interest Expenses 293 339 325 Income Before Taxes 161 348 259 Taxes (1) 25 78 50 Net Income -
Slide 27: Corporate & Other
27 Corporate & Other Reported ($MM) Q4/14 Q3/15 Q4/15 International Banking 150 175 179 Other (35) (106) (67) Revenue (1) 115 69 112 Provision for Credit Losses 9 15 13 Non-Interest Expenses 290 300 510 Income Before Taxes (184) (246) (411) (1) Taxes (138) (178) (202) Net Loss - Reported (46) (68) (
Slide 28: Q4 2015 Items of Note
28 Q4 2015 Items of Note After-Tax Pre-Tax & NCI EPS Effect Effect Effect Operating ($MM) ($MM) ($/Share) Segments Q4 2015 Restructuring charges primarily relating to employee 211 161 0.40 Corporate & Other severance Retail & Business Banking / Amortization of intangibles 11 9 0.02 Wealth Management
Slide 29: Non-GAAP Financial Measures
29 Non-GAAP Financial Measures • Adjusted results are non-GAAP financial measures that do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. • For further details on items of note see slide 28 of this prese
Canadian Imperial Bank of Commerce (CIBC) — Q4 2015 Earnings Presentation on 6ix